The Economic Impact of Ford and the F-SeriesSeptember 2020

Image: Ford.

Context for this document

BCG evaluated the importance of the F-Series and Ford to the US economy through the lenses of employment, GDP, and manufacturing impact, as well as through comparisons to other US companies and products

Summary of the study

BCG evaluated the impact of the F-Series and Ford across four dimensions:

Approach

1. Employment impact at a national and select regional levels

2. Economic impact at a national and select regional levels

3. Ford's current and historical US manufacturing presence

4. Product usage illustrating how the F-Series and Ford support Americans

Source: BCG analysis.

Our study has uncovered several key economic and employment impacts of Ford and its F-Series production

13 to 14 US jobs are supported for each direct Ford F-Series employee1

This equates to ~500 thousand total jobs attributable to the F-Series

The F-Series contributes approximately ~$49 billion to US GDP, including multiplier effects2

F-Series trucks are used by and support up to 13 million Americans in their daily work

Source: BCG analysis.1Includes dealership employment and impact on local communities. 2Multiplier effects include after-sales services and community GDP impact driven by employee respending.

Economic and employment impact

3

Manufacturingimpact

Usageimpact

Ford assembled 2x as many full-size pickups in the US as any competitor in 2019

The F-Series is among the most valuable consumer products in the US

The F-Series is the most popular vehicle on the road in the US today…

…and the F-Series is the highest-selling vehicle in the US over the last ten years

The F-150 is the most popular vehicle on the road in 39 of 50 US states

Ford is the most popular pickup truck in 75% of commercial vocations

Ford is the leading US auto manufacturer—responsible for one in five vehicles assembled domestically

Ford is a leader in automotive innovation in terms of patent quality and recency

The F-Series is the best-selling pickup truck in the world over the last ten years

Source: BCG analysis.

The F-150 is the most American-made full-size pickup truck (based on an external study)

Contents of this report

Employmentimpact

1

GDP impact

2

Manufacturing impact

3

Usage impact

4

Images: Ford.

Image: Ford.

Employment impact

GDP impact

Manufacturing impact

Usage impact

66

Direct Community jobsSuppliers

~37

~138–153

~177

~73

Dealers

~39–45

~16

Community jobs Dealer suppliers

~480–500

Total

The F-Series supports ~500,000 American jobs, representing ~13–14 jobs for every direct Ford employee

F-SERIESU

S jo

bs a

ttrib

utab

le to

the

F-Se

ries

(tho

usan

ds)

F-Series assembly line staff member,

Ford engineer

Dealer sales staff, vehicle technician

F-Series supplier machinist,

community nurse

E.g. Dealer's accountant,

community teacher

Dealers:Job creation

Mfg. & Corporate: Job creation

9–10xmanufacturing multiple

13–14x total multiple

Sources: Bureau of Labor Statistics (2019); F-Series supplier spending (2019); F-Series P&L (2019); F-Series plant-level costs and headcounts (2019); RIMS II ratios (2012 and 2017); Ford government relations (2019); public dealer reports; BCG analysis; image: Ford.Note: Dealers attributable to F-Series sales are based on state-level F-Series sales volume. Jobs supported exclude any employment impact through truck usage or employment impact resulting from taxes paid.

77

~340~1,010–1,060

~178

~87Community jobs

SuppliersDealersDirect

~271–304

~338

~98–118

~40

Community jobs Dealer suppliers

TotalUS

jobs

att

ribut

able

to F

ord

USA

(t

hous

ands

)

Dealers:Job creation

Mfg. & Corporate: Job creation

8–9xmanufacturing multiple

11–12xtotal multiple

Ford USA supports ~1 million American jobs, representing ~11–12 jobs for every direct Ford employee

FORD

E.g. Ford assembly line staff member,

Ford engineer

Dealer sales staff, vehicle technician

Ford supplier machinist,

community nurse

Dealer's accountant,

community teacher

Sources: Bureau of Labor Statistics (2019); Ford US supplier spending (2019); Ford US P&L (2019); RIMS II ratios (2012 and 2017); Ford government relations (2019); public dealer reports; BCG analysis; image: Ford.Note: Jobs supported exclude any employment impact through truck usage or employment impact resulting from taxes paid.

Sources: Expert interviews; BCG analysis.116.6 million F-Series in operation based on IHS Markit Vehicles in Operation (VIO) in US as of 4/1/20 (see IHS disclaimer).

F-Series on the roadBased on vehicle in operation data

x

estimated in commercial use Based on registration information, quantitative analysis, and expert interviews

x

average truckoccupancyBased on usage intensity estimates obtained via expert interviews

=

F-Series trucks are used by and support up to

Workers supported by the F-Series

F-Series trucks support workers in their daily jobs across all major industries, including:• Construction workers• Farmers and ranchers • Independent contractors• Delivery service people• Emergency vehicle drivers

Americans in their daily work F-Series in commercial use

estimated as those registered to an organization; personal vehicles used commercially, for personal projects (e.g., DIY renovations), or in recreation are in addition to those counted in commercial use

~17M 26–35% 2.1–2.4

13M

1

Representing approximately 8% of the US labor force

Image: Ford.

Employment impact

GDP impact

Manufacturing impact

Usage impact

10

~5

Suppliers

~11

Direct

~17

~3

Dealers(Sales)1

Dealers

~13

Communityimpact

~49

Total

US

GD

P co

ntrib

utio

n of

the

F-Se

ries

($bi

llion

s)

Ford activities, such as R&D, vehicle

assembly

Retail saleof F-Series

trucks

Supplier activities, such as part

manufacturing, professional services

Repairs, servicing, financing, and

insurance on F-Series vehicles

Employee respendingon community

industries such as food, health care, etc.

Product GDP contribution Manufacturing and sales ($31 billion)

Multiplier effect: After-sales and employee respending ($18 billion)

(After-sales services)2

The F-Series contributes ~$49 billion to US GDP through productionand multiplier effects

F-SERIES

Sources: Bureau of Labor Statistics (2019); F-Series supplier spending (2019); F-Series P&L (2019); F-Series plant-level costs and headcounts (2019); RIMS II ratios (2012 and 2017); Ford government relations (2019); public dealer reports; BCG analysis.Note: Dealers attributable to F-Series sales are based on state-level F-Series sales volume. Impact is attributable only to vehicle and parts/accessory sales. Excludes fuel economy and Ford credit impact.1Based on vehicle sales accounting for approximately 35% of dealer gross profits.2Does not include services and repairs by non-Ford dealers.

11

~7

~19

Suppliers Dealers(Sales)1

Direct

~32

~29

~13

Dealers Communityimpact

~100

TotalUS

GD

P co

ntrib

utio

n of

For

d U

SA (

$bill

ions

)

Ford activities, such as R&D,

vehicle assembly, etc.

Retail saleof Ford vehicles

Supplier activities, such as part

manufacturing, professional services

Repairs, servicing, financing, and

insurance on Ford vehicles

Employee respendingon community

industries, such as food, health care, etc.

Product GDP contribution Manufacturing and sales ($58

billion)

Multiplier effect: After-sales and employee respending ($42 billion)

(After-sales services)2

Ford USA contributes ~$100 billion to US GDP throughproduction and multiplier effects

FORD

Sources: Bureau of Labor Statistics (2019); Ford US supplier spending (2019); Ford US P&L (2019); RIMS II ratios (2012 and 2017); Ford government relations (2019); public dealer reports; BCG analysis.Note: Impact is attributable only to vehicle and parts/accessory sales. Excludes fuel economy and Ford credit impact.1Based on vehicle sales accounting for approximately 35% of dealer gross profits. 2Does not include services and repairs by non-Ford dealers.

Image: Ford.

Employment impact

GDP impact

Manufacturing impact

Usage impact

1313

2010 2012 2014 2016 2018

1,000

0

500

Full-size pickup trucks assembled in the US (thousands)

Sources: Based on IHS Markit CYE 2019 US Light Vehicle Production data (see IHS disclaimer); BCG analysis; image: Ford.Note: GM pickup truck brands include Sierra and Silverado.

Ford assembled twice as many full-size pickups in the US as any competitor in 2019

2.1x

FCAGM

ToyotaNissan

14

Ford is responsible for one in five vehicles assembled in the US

Ford 2,170

Vehicles assembled (2019, thousands)

Sources: Based on IHS Markit CYE 2019 US Light Vehicle Production data (see IHS disclaimer); BCG analysis; image: Ford.1Including BMW, Daimler, Geely, Hyundai, Karma Automotive, Mercedes-Benz, Navistar, Renault-Nissan-Mitsubishi, Kia, Tesla, Volkswagen.

% of US vehicle assembly

GM

FCA

Toyota

Honda

Others1

1,677

1,420

1,195

1,205

2,926

Total: 10,593

25 25 26 25 28

11 11 11 11 1111 11 12 11 1115 13 11 13 13

18 20 19 18 16

21 20 22 21 20

2016 20182015 2017 2019

15

50

60

70

80

0 100 200 300 400 500 600

Tundra

ColoradoCanyon

Vehicles sold (2019, thousands)2

Kogod Made in America Index1

Tacoma

F-1503

Ridgeline

Frontier6

Ram 15005

Silverado 15004Sierra 15004

RangerTitan

Mid-sizeFull-size

Sources: Made in America Auto Index (Kogod School of Business at American University); BCG analysis; image: Ford.Note: Ford F-150, Chevrolet Colorado, and GMC Canyon all earned a Made in America score of 78/100. Excludes Jeep Gladiator.1The Kogod Made in America Auto Index, developed by the Center for Automotive Research, evaluates vehicles' domestic content based on seven criteria using publicly available data: profit margin, labor, location of research and development, inventory capital, engine construction, transmission construction, and body chassis construction. 2Based on IHS Markit US Total New Vehicle Registrations (full-size pickup and mid-size pickup) CY 2019 (see IHS disclaimer). 3F-150 classified as a full-size truck; excludes Super Duty, DOHC, and DSI models. 4Excludes HD models (Silverado VIN=1 models scored 71 on the Made in America index, not shown). 5Ram includes both Classic and non-Classic models, with an average score of 65 shown; the Classic model scored 73.5, and the non-Classic model scored 58.5 on the Made in America Index. 6The average of the 4- and 6-cylinder models is shown (which scored 59 and 45, respectively, on the Made in America index).

Truck classification

The F-150 leads the industry both in number of vehicles sold and as the most American-made truck2

An external study confirms the F-150 is the most American-made full-size pickupAmerican University's 2019 Made in American Auto Index found that the F-150 is the most American-made full-size pickup

16

Sources: LexisNexis PatentSight; BCG Center for Growth & Innovation Analytics; image: Ford.Note: Competitive Impact™, Technology Relevance™, and Market Coverage™ are trademarks of LexisNexis PatentSight.1As measured by a patent's Technology Relevance™ and Market Coverage™; Competitive Impact™ is stated relative to other patents in the same field (e.g., a value of three means that the patent is three times as important as the average patent in the field). 2Measured as the number of patent filings since 2017 divided by the number of patents filed since 2013; analysis based on ~114,000 patent families belonging to Fiat Chrysler Automobiles, Ford Motor Company, General Motors Company, Honda Motor Company, Nissan Motor Company, Toyota Motor Corp., and Volkswagen Group filed since 2013.

Ford is aleader in the auto industryin both patent Competitive Impact and Freshness

Ford is a leader in the automotive industry for combined quality and recency of patent filings

0

1

2

3

0 30 35 40

HondaVolkswagen

GM

Average Competitive Impact™

Nissan

FCA

Ford

Toyota

Tesla

10,000 patent families

Average Competitive Impact™is a measureof a patent's economic value1

Freshness is a measure of acompany's patents' recency2

Freshness % (2017)

17

Ford’s IP is supporting innovation across industries

Ford patents are cited in innovative new products across industries, from agriculture to biopharma

From 2013 through 2017, Ford's patents were cited

~23,000times across different industries

Citing patent

Industry

Detection and mitigation of harmful gases via integration with home automation systems

Citing patent

Industry

Illustrative examples

Sources: LexisNexis PatentSight; BCG Center for Growth & Innovation Analytics.

Aircraft monitoring

Surgical robotics

Exercise machine

Aircraft-operating-data monitor provides integrated view of asset health

System for controlling articulating arm as part of confidence-based robot-assisted surgery system

Exercise program based on real-world routes, including video display and topographical simulation

Medtechdevices

Medical treatment device and method for stimulating neurons of a patient

Health care/pharmacy

Controlled release of peptide formulations to deliver treatment solutions to administration devices

Audiotechnology

Voice-activated virtual assistant used to retrieve and deliver information to the user using a wireless earpiece

Visiontechnology

Machine learning program analyzes body language to improve interaction between humans and robots

Home automation

1818

6

4

0

2

Sources: LexisNexis PatentSight; BCG Center for Growth & Innovation Analytics.Note: Analysis based on 18,000 active and inactive patent families relating to the future of mobility belonging to FCA, Ford, GM, Honda, Nissan, Tesla, Toyota, and VW Group filed since 2013. Competitive Impact™ is a trademark of LexisNexis PatentSight.

0

4

5

2

2010 15

6

% of all families filed since 2013 focused on future of mobility

Toyota

Patent family citation frequency

Ford

VW Group

GM

Honda

Nissan

Tesla

FCA

1,000 future of mobility patent families

Future of mobility patents include autonomous and electric vehicles, artificial intelligence, machine vision, internet of things, connected vehicles, and additive manufacturing, among others

Ford is a leader in patent family citations and number of future of mobility patents

84%Ford has filed more future of mobility patents than FCA and GM combined

1 in 5 of Ford's patent families since 2013 are focused on the future of mobility

Ford is investing in the future of mobility

Image: Ford.

Employment impact

GDP impact

Manufacturing impact

Usage impact

20

The F-Series is among the largest US consumer products—bigger than Android and combined major sports leagues

Sources: Company financial statements; Google legal disclosures; Forbes; IDC; Euromonitor; Chicago Tribune; BCG analysis.Note: Company financials are last fiscal year. Product list is not exhaustive and focuses on select products.1IDC Quarterly Mobile Phone Tracker, 2019.2F-Series North American total sales of ~$49 billion.3Operating system revenue (not device sales) estimated based on 2016 revenue using user growth as a proxy. 4Disney Parks, Experiences and Products segment includes Disney theme parks and resorts, cruises and merchandise licensing, and retail revenue. 5Euromonitor Appliances and Consumer Electronics Market Size Report, 2019.

F-Se

ries

rela

tive

size

iPhone(US)1

Ford F-Series

(US)2

Android OS (US)3

Budweiser (AB InBev US)

NHLNBAMLBNFLUSrefrigerators5

0.8x 1.2x 2.2x 2.8x 2.8x 3.8x 4.7x 8.5x

55

4236 32

19 15 15 11 9

Global Disney experiences4

Rev

enue

($bi

llion

s) Major sports leagues' combined revenue ~$40 billion

5

1.3x

21

Ford F-Series

(US)1

The F-Series alone generated more revenue than many recognizable companies in 2019

2019

reve

nue

($bi

llion

s)

1.0x 1.1x 1.1x 1.1x 1.5x1.4x 1.8x

Sources: Company financial statements; BCG analysis.Note: Company financials are taken from last fiscal year, and company list is not exhaustive and focuses on select companies.1F-Series North American total sales of ~$49 billion.2Includes franchise revenues. 3Excludes energy generation and storage and services segments.

F-Se

ries

rela

tive

size

42 40 39 39 3731 28

23 21 2014

John Deere VisaMcDonald's(US)2

Nike Starbucks2Coca-Cola Capital One

Tesla3 Netflix Uber

3Twitter

2.0x 2.1x 3.0x 12.2x

22

Combined, F-Series trucks account for ~16.6 million, or ~6%,of vehicles on the road

The F-Series is the most popular vehicle on the road in the US today

Sources: Based on IHS Markit Vehicles in Operation (VIO) vehicles still on the road in the US as of 4/1/20 (see IHS disclaimer);BCG analysis; image: Ford.Note: Dodge Ram includes both Dodge and Ram trucks, including light-duty vehicles (GVW 1-3) only.

5.73.7

2.82.5

2.32.1

1.91.61.6

1.41.31.31.3

1.21.2

1.11.0

1.01.0

0.90.90.90.80.8

Ford F-Series

Share of vehicles in operation (%)

Toyota Tacoma

Chevrolet Silverado

Toyota Corolla

Dodge Ram

Honda CR-V

Honda Civic

Toyota Camry

Chevrolet Impala

Honda Accord

GMC SierraNissan Altima

Toyota RAV4Ford Escape

Ford Explorer

Jeep WranglerJeep Grand Cherokee

Chevrolet EquinoxFord Fusion

Chevrolet Malibu

Toyota Highlander

Ford Focus

Dodge Caravan

Chevrolet Tahoe

F-Series Ford

23

The F-150 is the most popular vehicle on the road in 39 of 50 US states

Ford F-150

39ToyotaCamry

HondaAccord

ToyotaTacoma

ChevroletSilverado

HondaCivic

3 3 2 2 1

Number of states as best-selling vehicle

23

AK

HI

MAMN

MT NDID

WA

AZ

CA CO

NV

NM

OR

UT

WY

AR

IA

KS MO

NE

OK

SD

LATX

CT

NH

RI

VT

AL

FL

GAMS

SC

IL IN

KYNC

OH

TN

VA

WI

WV

DE

DCMD

NJ

NY

PA

ME

MI

Sources: Based on IHS Markit Vehicles in Operation (VIO) in the US as of 4/1/20 (see IHS disclaimer); BCG analysis.

24

Sources: Based on cumulative IHS Markit US Total New Vehicle Registrations CY 2010–2019 as of April 30, 2020 (see IHS disclaimer); BCG analysis; image: Ford.1Includes HD models. 2Includes Ram 1500, 2500, and 3500. 3Includes Camry Classic, Gracia, and Solara. 4Includes Corolla Cross and EX models.

The F-Series is the highest-selling vehicle in the US over the last ten years

7,579

4,1453,763

3,193 3,187 3,187 3,003 2,911 2,744

Dodge Ram2

F-Series

Sierra1,949

Silverado5,135

Accord CR-VGM trucks1

CivicCamry3 Corolla4 RAV4 Escape

7,084

Top ten vehicles sold in the US 2010–2019 (thousands)

F-Series' sales are greater than those of the Camry and Corolla combined

2525

The F-Series is the best-selling pickup truck in the world over the last ten years

Global top ten vehicles sold between 2010–20191 (thousands)

Sources: Based on cumulative IHS Markit Global New Vehicle Registration data CY 2010–2019, which is compiled from government and other sources and captures 95% of global new vehicle volumes in more than 80 countries as reported in June 2020 (see IHS disclaimer); BCG analysis; image: Ford.1General Motors full-size pickups include both Sierra and Silverado trucks and their associated HD models. 2Ram not among the top-selling vehicles and is shown here for comparison purposes only; Ram trucks include Dodge and Ram trucks, including Ram 1500, 2500, and 3500. 25

F-Series among top three selling vehicles globally

5,841

2,495

OEM 2Car

Ramtrucks2

OEM 1Car

Ford Focus

9,124

GM FStrucks1

F-Series OEM 1Car

OEM 1Car

OEM 1Car

OEM 2Car

OEM 3SUV

5,117

Sierra

Silverado

26

Ford is the most popular pickup truck across commercial vocations

75%

Ford is the most populartruck in

of vocations2

40%

25%

All others

Fleet market share1

(sizes proportional)% of 2019 new commercial pickup

registrations by vocation2

59%

51%

47%

42%

42%

40%

35%

35%

33%

33%

31%

28%

11%

18%

11%

14%

18%

21%

21%

22%

19%

11%

17%

14%

Mining

Manufacturing

Petroleum

Utility services

Government

Emergency vehicles

Construction

Agriculture

Hazardous materials

Bus transportation

Specialized hauling

Forestry

Ford Nearest competitor

Nearest competitor

35%

Sources: Cox Automotive Research; BCG analysis.1Data from 2018. 2Based on IHS Markit CY 2019 US TIPNet registrations by vocation, excluding registrations to individuals (see IHS disclaimer); illustrative vocations shown (not exhaustive).

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28Image: Ford.